The Hong Kong Monetary Authority (HKMA) has questioned HSBC after the bank announced in July that it would locate its new global artificial intelligence (AI) centre in Singapore rather than in the Hong Kong Special Administrative Region. The episode underscores intensifying competition between the two leading Asian financial centres.
HSBC’s plans
HSBC already maintains AI teams in the United Kingdom and in Hong Kong, and it is also planning to set up an AI research institute within Hong Kong. Nonetheless, the bank’s July announcement said the new Singapore super‑hub would recruit more than one hundred AI specialists to work on wealth management and payments technology.
Part of the rationale for the Singapore investment is HSBC’s desire to demonstrate continued commitment to the city after it sold its Singapore insurance business to Allianz this summer for $2.1 billion.
Broader restructuring at HSBC
Under chief executive officer Georges Elhedery, HSBC is undergoing a major restructuring: it is withdrawing from a number of countries and business lines to focus on its core markets, notably Hong Kong. As part of that strategy the bank fully acquired Hang Seng Bank in a $14 billion deal, strengthening its position as a leading lender in the region.
Recently HSBC relocated the fourth member of its group operational committee to Hong Kong. Standard Chartered has made similar moves, transferring senior executives out of Singapore.
HKMA pressure and regulatory priorities
HKMA’s scrutiny is not limited to the AI centre decision. The regulator has engaged both HSBC and Standard Chartered in discussions about moving more senior roles to Hong Kong. Maintaining the city’s status as an international financial centre is one of HKMA’s four core responsibilities, alongside preserving currency stability, ensuring financial system stability, and managing the Exchange Fund that underpins the Hong Kong dollar.
A participant in the discussions said the HKMA already has the tools to exert pressure and does not need to introduce new rules to do so.
Talent and business competition between Hong Kong and Singapore
The two Asian financial hubs have competed for international finance talent for decades. In the years following the COVID‑19 pandemic many professionals chose Singapore because of China’s strict health measures; Hong Kong is now trying to win senior bankers back. The latest battleground includes asset managers, where Hong Kong has been offering lower taxes to attract business.
Regulatory engagement and executive relocations are part of Hong Kong’s efforts to reinforce its regional financial role while global banks reshape their strategies and operating centres.
An AI assistant contributed to preparing this article; a journalist edited and verified the final content.
